interim report january– june 2015 q2 april–30 june 2015 net sales net sales decreased by 1% to...

1 April–30 June 2015

• Netsalesdecreasedby1%toSEK1,700million(1,718).Deliveryvolumesincreasedby1%andthepricesfellinaverageby1%.

• Operatingprofitfromcontinuingoperationsdecreasedby20%toSEK203million(255).Ahigherproportionofdeliveriesfromstockspreviouslyrecognisedasrevenueandhighersilviculturalcostsarethemainreasonsforthedeclineinearnings.DeliveryvolumesfromSveaskog’sownforestsincreasedby5%.Pricesfellbyanaverage

of1%.• ChangeinvalueofforestassetswasSEK293million(164).• Profitforthequarterrose29%toSEK393million(306).

1 January–30 June 2015

• Netsalesdecreasedby1%toSEK3,248million(3,282).Bothsalesvolumesandpriceswerelargelyunchanged.

• Operatingprofitfromcontinuingoperationsdecreasedby1%toSEK623million(632).DeliveryvolumesfromSveaskog’sownforestsincreasedby2%whileaveragepriceswereunchanged.

• ChangeinvalueofforestassetswasSEK432million(192).• Profitfortheperiodrose36%toSEK805million(594).

Q2Interim report January – June 2015

Photo:Shutterstock

Europe is the biggest export market for Swedish forest industry.

3months 6months 12months April–June January–June July2014– FullyearSEKm 201520142015 2014 June2015 2014

Netsales 1,7001,718 3,248 3,282 6,198 6,232

Operatingprofitfromcontinuingoperations 203255 623 632 1,245 1,254

Changeinvalueofforestassets 293 164 432 192 1,272 1,032

Operatingprofit 548 446 1,133 880 2,671 2,418

Profitbeforetax 497 382 1,023 745 2,435 2,157

Profitfortheperiod 393 306 805 594 1,902 1,691

Cashflowfromoperatingactivities 308 316 624 510 883 769

Sveaskog is Sweden’s leading forest company and sells sawlogs, pulpwood, biofuel and forest seedlings. Sveaskog also works with land transactions and develops the forest as a venue for hunting, fishing and other nature-based experiences. The forest and its assets are Sveaskog’s core business and sustainable development permeates every aspect of Sveaskog’s activities.

Stable earnings for the first six months of the yearSveaskog’s operating profit from continuing operations for the first six months of 2015 amounted to SEK 623 million (632), a decrease of 1%. A higher proportion of deliveries from stocks previously re cognised as revenue and higher silvicultural costs are the main reasons for the decline in earnings. In the first half of the year, deliveries from own forests increased by 2% while timber prices on average were unchanged. Yield amounted to 4.9% (4.5) which exceeds the long-term target of 4.5%. Net sales amounted to SEK 3,248 million (3,282). Sveaskog’s total sales of wood raw material amounted to 5.7 (5.7) million cubic metres

(m3sub). Sawlog sales increased by 2%, sales of pulpwood and chips were unchanged while sales of biofuel decreased by 10%.

Market developmentIn Sweden and the rest of Europe, the key markets for Swedish forest industry, growth increase is weak while development in the US is stronger. Growth in China is slowing down but from a high level. The value of the Swedish krona has weakened which provides improved margins for Swedish forest industry which in turn is positive for Sveaskog as a raw material supplier. Construction in Europe remains at a stable but still low level. In the US, construction is increasing but this change mainly applies to apartment blocks. The Swedish sawmills have experienced relatively good demand and exports have increased. In North Africa and parts of the Middle East demand has been surprisingly high in view of the political uncertainty in these regions. Exports to China are rising steadily. The sawmills have experienced good sawlog availability. Global deliveries of paper pulp are increasing while stocks decreased slightly. Exports from the Swedish pulp mills have fallen due to weaker growth in the European market. Demand for graphic paper products continues to fall while the prospects are better for other products such as cartonboard and paper for packaging. The availability of pulpwood and cellulose chips was good during the period. In Sweden demand for wood-based biofuels was relatively weak. The main reasons are other competing fuels, more efficient production and distribution of energy and low electricity prices. Production of felling residues (branches and tops) is falling.

Changes in Sveaskog’s Board of DirectorsAt an extraordinary General Meeting held in June, Helene Biström was elected as Chairman of the Board after Göran Persson resigned from the Board at his own request. Helene Biström has been a member of the Board of Sveaskog since April 2014.

Per-Olof Wedin, President and CEO

– 2 –

InterIM report JAnuAry – June 2015

Target4.5

0

1

2

3

4

5

July 2012–June 2013

4.5

3.7

4.9



Yield, %, rolling 12 months

Target0.3-0.6

0.0

0.1

0.2

0.3

0.4

0.5

0.6

June 2013 June 2015June 2014

0.55

0.450.49

Net debt/equity ratio, multiple, at 30 June

Product breakdown by % of sales, rolling 12 months

Sawlogs 48%Pulpwood and chips 40%Biofuel 4%Other 8% (forest seedlings, leases, etc.)

CEO’s comments

1 AprIl–30 June 2015

net sales Net sales decreased by 1% to SEK 1,700 million (1,718). Total delivery volumes were 1% higher compared with the corresponding period last year while average prices were 1% lower. Sales of wood raw material amounted to 2.8 (2.8) million cubic metres (m3sub).

earnings

forests increased by 5% while prices decreased by an average of 1%. The decline in earnings is mainly explained by a higher proportion of deliveries from stocks. According to the accounting rules applied (IFRS) inventories are measured at market value. This means that revenue recognition when inventories change can take place in a period other than the delivery period. The change for the quarter amounted to SEK -34 million. Higher silvicultural costs are an additional reason for the decline in earnings. Gains from property sales amounted to SEK 30 million (–6). Share of profits of the associate Setra Group amounted to SEK 22 million (33). Operating profit before change in value of forest assets amounted to SEK 255 million (282). Change in value for the second quarter was SEK 293 million (164). The increase is attributable to higher price effects in the valua-tion model and slightly lower felling volumes. After change in value of forest assets, operating profit amounted to SEK 548 million (446). Net financial items in the quarter amounted to SEK –51 million (–64). Profit before tax increased by 30% to SEK 497 million (382). Tax for the period amounted to SEK –104 million (–76). Profit for the quarter rose 29% to SEK 393 million (306).

1 JAnuAry–30 June 2015

net sales Net sales decreased by 1% to SEK 3,248 million (3,282). Both sales volumes and prices were largely unchanged. Sales of wood raw material amounted to 5.7 (5.7) million cubic metres (m3sub).

earnings

Operating profit from continuing operations decreased by 1% to SEK 623 million (632). Deliveries from own forests were 2% higher and prices were largely unchanged. The effects of increased deliveries were counteracted by higher deliveries from stocks and increased silvicultural costs. Earnings include a VAT remission of SEK 36 million attributable to a transfer of operations at the beginning of the 2000s. Gains from property sales amounted to SEK 46 million (–2). Share of profits of the associate Setra Group amounted to SEK 32 million (58). Operating profit before change in value of forest assets amounted to SEK 701 million (688). Change in value of forest assets was SEK 432 million (192). The increase is attributable to higher price effects in the valuation model and slightly lower felling volumes. After change in value of forest assets, operating profit amounted to SEK 1,133 million (880). Net financial items amounted to SEK –110 million (–135). Profit before tax increased by 37% to SEK 1,023 million (745). Tax for the period amounted to SEK –218 million (–151). Profit for the period increased by 36% to SEK 805 million (594).

Cash flow, investments and financial position

Cash flow from operating activities amounted to SEK 624 million (510). The increase is mainly due to a more positive change in working capital. Investments in property, plant and equipment amounted to SEK 59 million

– 3 –

Group performance

0

500

1,000

1,500

2,000

1,700

Q1-13 -14 -15

201320142015

Q2-13 -14 -15

Q3-13 -14 -15

Q4-13 -14 -15

Net sales, SEKm

0

100

200

300

400

500

203

201320142015

Q1-13 -14 -15

Q2-13 -14 -15

Q3-13 -14 -15

Q4-13 -14 -15

Operating profit from continuing operations, SEKm

0

200

400

600

800

1,000

393

Q1-13 -14 -15

Q2-13 -14 -15

Q3-13 -14 -15

Q4-13 -14 -15

201320142015

Profit for the period, SEKm

Operating profit, SEKm

0

200

400

600

800

1,000

1,200

548

Q1-13 -14 -15

Q2-13 -14 -15

Q3-13 -14 -15

Q4-13 -14 -15

201320142015


– 4 –

0

100

200

300

400409

Q1-13 -14 -15

Q2-13 -14 -15

Q3-13 -14 -15

Q4-13 -14 -15

201320142015

Cash flow from operating activities per quarter, SEKm

(52) and investments in shares amounted to SEK 1 million (1). Sales of property, plant and equipment, primarily forest properties, amounted to SEK 109 million (10). Cash flow includes a dividend from Setra Group AB of SEK 32 million. Sveaskog’s interest-bearing net debt at 30 June amounted to SEK 8,275 million (8,490). At the end of the period, the loan portfolio mostly comprised loans issued under Sveaskog’s MTN programme as well as a Swedish commercial paper programme. Approximately 4% of the portfolio consists of bank financing. The loan volume under the commercial paper programme amounted to SEK 2,720 million (2,520) and is refinanced regularly. Under the MTN programme the outstanding volume at 30 June was SEK 4,890 million (5,190). The lowest average fixed interest period during the six-month period was 31 months. The net debt/equity ratio amounted to 0.45 (0.49). Interest cover amounted to 5.2 (4.0) and the gross borrowing cost was 2.02% (2.67).

parent Company

Sveaskog AB (publ.), 100% owned by the Swedish state, owns and manages forest properties and shares in subsidiaries and is responsible for Group-wide financing. Operating income for Sveaskog AB (publ.) in the first six months of the year amounted to SEK 7 million (6). Loss after net financial items was SEK 122 million (–191). The Parent Company’s costs mainly comprise interest expenses. The company has no employees.

Setra Group AB

Sveaskog owns 50% of the shares in the wood products company Setra Group AB which is reported as an associate. Share of profits of associates is recognised in the consolidated income statement. Net sales for the period January–June amounted to SEK 2,270 million (2,258). Operating profit amounted to SEK 88 million (165). Demand for wood products was relatively stable in the first six months of the year but increased production led to excess supplies and a fall in prices. The price fall was compensated to some extent by the weaker Swedish krona. The negative trends in the market strengthened somewhat towards the end of the period. Sveaskog’s share of the company’s profits, adjusted for intra-group profits, decreaed by 45% in the six-month period to SEK 32 million (58).

0

2,000

4,000

6,000

8,000

10,000

8,275

Q1-13 -14 -15

Q2-13 -14 -15

Q3-13 -14 -15

Q4-13 -14 -15

201320142015

Interest-bearing net debt, SEKm

Market situation and timber deliveries

Sveaskog conducts trading in wood raw material in Sweden and more than half of the material is taken from the company’s own forests. The main product range is sawlogs, pulpwood and chips, and biofuel. Most of Sveaskog’s customers are in Sweden but export a large proportion of their products worldwide. Supply, demand, prices and currencies therefore affect profitability at different stages. Europe is the largest export market for Swedish forest products although exports to new markets outside Europe are rising. The weakening of the Swedish krona which has occurred recently is positive for most of Sveaskog’s customers.

SAWMIllS

Construction in Europe is at a stable but still relatively low level. In the US, construction is rising but the change mainly applies to apartment blocks. Exports of sawn wood products to the US from Europe and Sweden are rising but Canada is still by far the biggest exporter. In Sweden, production of sawn wood products has been close to previous average levels. Stocks were at a relatively high level but decreased slightly towards the end of the period at the same time as order intake


0

200

400

600

800

1,000

1,200

1,4001,260

Q1-13 -14 -15

Q2-13 -14 -15

Q3-13 -14 -15

Q4-13 -14 -15

201320142015

Delivery volume sawlogs, thousand m3sub

– 5 –

improved. Swedish demand was relatively high. Exports also increased. Demand was also surprisingly high in North Africa and parts of the Middle East despite the political uncertainty in these regions. Exports are rising steadily. Export prices fell slightly. Sawlog availability was high. Raw material stocks have been relatively high but are now showing signs of decreasing. Earlier price cuts for sawlogs have now been replaced by cautious price increases.

Sveaskog’s deliveries

Sveaskog delivered 1,260 (1,218) thousand m3sub of sawlogs in the second quarter which is 3% higher than in the corresponding period last year.

pulp AnD pAper InDuStry

Globally, deliveries of paper pulp increased while stocks decreased slightly. Almost 80% of Swedish exports go to Europe where growth so far has not fully met expectations. Exports therefore decreased somewhat at the same time as production increased. Export prices have been reduced but from high levels. Demand for graphic products continues to fall. On the other hand an improvement can be seen for many other products such as cartonboard for packaging and packaging paper. Swedish production here is at a high level and the earlier trend with falling production and paper exports has been reversed. The period was characterised by good availability for pulpwood and cellulose chips. Earlier price increases for pulpwood have levelled out.


Sveaskog delivered 1,332 (1,335) thousand m3sub of pulpwood and chips in the second quarter which is the same level as in the corresponding period last year.

BIoFuel MArKet

In Sweden, energy production from wood-based biofuel is regional or local. Demand was weak during the first half of the year. The main reasons are other competing fuels such as waste, more efficient production and distribution of energy as well as low electricity prices. Production of felling residues (branches and tops) is falling.


Sveaskog delivered 191 (212) thousand m3sub of biofuel in the second quarter which is 9% less than in the corresponding period last year.

0

100

200

300

400

500

600

191

Q1-13 -14 -15

Q2-13 -14 -15

Q3-13 -14 -15

Q4-13 -14 -15

201320142015

Delivery volume biofuel, thousand m3sub

0

400

800

1,200

1,600

1,332

Q1-13 -14 -15

Q2-13 -14 -15

Q3-13 -14 -15

Q4-13 -14 -15

201320142015

Delivery volume pulpwood and chips, thousand m3sub

Key figures, Group Jan–June Jan–June July 2014– Full year 2015 2014 June 2015 2014

Yield, % 1) (target at least 4.5%) 4,9 4,5 4,9 5,0 Net debt/equity ratio, multiple (target 0.3–0.6) 0.45 0.49 0.45 0.44 Operating margin, % 35 27 43 39 Return on operating capital, % 1) 10.1 8.5 10.1 9.2 Return on equity, % 1) 10.6 8.7 10.6 9.4 Interest cover, multiple 1,3) 5.2 4.0 5.2 4.8 Equity ratio, % 49 48 49 50 Interest-bearing net debt, SEKm 8,275 8,490 8,275 8,207 Earnings per share, SEK 2) 6.80 5.02 16.06 14.28 Average number of employees 829 860 829 877 Number of employees 684 690 684 678 Total delivery volume, thousand m3fub 5,666 5,668 10,837 10,838


1) Rolling 12 months. 2) Calculated on number of shares, 118,373,034.3) Operating profit before change in value of forest assets minus capital gains on property sales plus financial income divided by financial expenses.

– 6 –

Sveaskog Group

Condensed income statement

3 months 6 months 12 months

April–June April–June Jan–June Jan–June July 2014– Full yearSEKm 2015 2014 2015 2014 June 2015 2014

Net sales 1,700 1,718 3,248 3,282 6,198 6,232

Other operating income 9 13 9 21 43 55

Raw materials and consumables –393 –455 –862 –953 –1,673 –1,764

Change in inventories –231 –135 –189 –60 –47 82

Other external costs –717 –725 –1,266 –1,340 –2,659 –2,733

Employee benefit expenses –140 –137 –268 –270 –520 –522

Depreciation –25 –24 –49 –48 –97 –96

operating profit from continuing operations 203 255 623 632 1,245 1,254

Capital gains/losses from property sales 30 –6 46 –2 116 68

Share of profits of associates 22 33 32 58 38 64

operating profit before change in value of forest assets 255 282 701 688 1,399 1,386

Change in value of forest assets (Note 1) 293 164 432 192 1,272 1,032

operating profit 548 446 1,133 880 2,671 2,418

Financial items –51 –64 –110 –135 –236 –261

profit before tax 497 382 1,023 745 2,435 2,157

Tax –104 –76 –218 –151 –533 –466

profit for the period/year 393 306 805 594 1,902 1,691

Earnings per share, SEK, before and after dilution 3.32 2.59 6.80 5.02 16.06 14.28

- calculated on the average number of shares, million 118.4 118.4 118.4 118.4 118.4 118.4

Statement of comprehensive income



profit for the period/year 393 306 805 594 1,902 1,691

other comprehensive income

Components that will not be reversed in profit or loss

Actuarial gains/losses on pensions * – – – – –108 –108

Tax on actuarial gains/losses – – – – 24 24

Components that can be reversed in profit or loss

Exchange differences 0 0 0 0 0 0

Cash flow hedges 24 –32 14 –65 –37 –116

Tax attributable to cash flow hedges –5 7 –3 14 9 26

total other comprehensive income forthe period/year, net after tax 19 –25 11 –51 –112 –174

total comprehensive income for the period/year 412 281 816 543 1,790 1,517

* Actuarial calculations are only performed per full year.


– 7 –

Sveaskog Group

Condensed balance sheet

SEKm 30 June 2015 30 June 2014 31 Dec 2014

ASSetS

non-current assets

Intangible assets 1 3 2

Property, plant and equipment

Forest land (Note 1) 2,184 2,160 2,174

Other property, plant and equipment 509 534 534

Biological assets – standing timber (Note 1) 30,748 29,568 30,344

Financial assets 503 488 503

total non-current assets 33,945 32,753 33,557

Current assets

Inventories 519 606 740

Current receivables, etc., non-interest bearing 1,566 1,582 1,561

Cash and cash equivalents 1,559 1,480 1,345

total current assets 3,644 3,668 3,646

totAl ASSetS 37,589 36,421 37,203

eQuIty AnD lIABIlItIeS

equity 18,479 17,489 18,463

non-current liabilities

Interest-bearing liabilities and provisions 6,109 6,556 6,536

Other liabilities and provisions 7,938 7,666 7,898

total non-current liabilities 14,047 14,222 14,434

Current liabilities

Interest-bearing liabilities 3,725 3,414 3,016

Other liabilities 1,338 1,296 1,290

total current liabilities 5,063 4,710 4,306

totAl lIABIlItIeS 19,110 18,932 18,740

totAl eQuIty AnD lIABIlItIeS 37,589 36,421 37,203


Capital turnover rateNet sales divided by average operating capital.

Equity ratioEquity divided by total assets, all calculated at the end of the year.

Gross marginOperating profit before depreciation and share of profit of associates expressed as a percentage of net sales.

Interest-bearing net debtInterest-bearing liabilities minus interest-bearing assets, all calculated at the end of the period/year.

Interest coverOperating profit before change in value of forest assets excl. capital gains on property sales plus financial income divided by financial expenses.

Net debt/equity ratioInterest-bearing net debt divided by equity.

Net earnings per shareProfit for the period/year after tax divided by average number of shares during the period/year.

Definitions

Operating capitalTotal assets excluding interest-bearing assets, tax assets and assets held for sale minus non-interest bearing liabilities and deferred tax liabilities, all calculated at the end of the year.

Operating marginOperating profit expressed as a percentage of net sales.

Operating profit from continuing operationsOperating profit before change in value of forest assets, share of profits of associates and capital gains from property sales.

Return on equityProfit after tax expressed as a percentage of average equity.

Return on operating capitalOperating profit divided by average operating capital, excluding deferred tax.

YieldOperating profit before change in value of forest assets excluding capital gains on property sales, divided by average operating capital, excluding deferred tax.

Sveaskog Group

Condensed statement of cash flows

SEKm Jan–June 2015 Jan–June 2014 Full year 2014

operating activities

Operating profit 1,133 880 2,418

Adjustment for non-cash items, etc. –546 –242 –1,236

Interest received 5 11 21

Interest paid –114 –146 –267

Paid tax –127 –73 –120

Cash flow from operating activities before change in working capital 351 430 816

Change in working capital 273 80 –47

Cash flow from operating activities 624 510 769

Investing activities

Investments in property, plant and equipment –59 –52 –132

Investments in shares –1 –1 –1

Dividend from associate 32 – –

Sale of property, plant and equipment 109 10 194

Sale of shares 0 0 0

Change in interest-bearing receivables 0 0 0

Cash flow from investing activities 81 –43 61

Financing activities

Dividend paid –800 –450 –450

Change in financial liabilities 309 308 –190

Cash flow from financing activities –491 –142 –640

Cash flow for the period/year 214 325 190

Cash and cash equivalents, opening balance 1,345 1,155 1,155

Cash and cash equivalents, closing balance 1,559 1,480 1,345

Condensed statement of changes in equity


opening equity, 1 January 18,463 17,397 17,397

Total comprehensive income 816 543 1,517

Dividend paid in accordance with AGM decision –800 –450 –450

Closing equity at the end of the period/year 18,479 17,489 18,463

– 8 –


Parent Company

Condensed income statement



Operating income 3 3 7 6 17 16

Operating expenses 0 –12 –1 –15 9 –5

operating profit/loss 3 –9 6 –9 26 11

Financial items –63 –91 –128 –182 40 –14

profit/loss before tax –60 –100 –122 –191 66 –3

Tax 13 21 27 42 –15 0

profit/loss for the period/year * –47 –79 –95 –149 51 –3

* Same as Total comprehensive income for the period/year.

Condensed balance sheet

SEKm 30 June 2015 30 June 2014 31 Dec 2014

ASSetS non-current assets Property, plant and equipment 56 57 56total property, plant and equipment 56 57 56

Financial assets

Shares and participations 24,934 24,934 24,934

Receivables from group companies, interest-bearing 2,410 2,410 2,410

total financial assets 27,344 27,344 27,344total non-current assets 27,400 27,401 27,400

Current assets Current receivables, etc., non-interest bearing 62 82 354 Receivables from group companies, interest-bearing 226 342 0

Cash and cash equivalents 0 0 0total current assets 288 424 354totAl ASSetS 27,688 27,825 27,754

eQuIty AnD lIABIlItIeS

equity 9,967 10,716 10,862

non-current liabilities

Interest-bearing non-current liabilities 5,486 5,986 5,886

Other provisions 1 3 1total non-current liabilities 5,487 5,989 5,887

Current liabilities

Interest-bearing liabilities and provisions 12,185 11,065 10,938

Other liabilities and provisions 49 55 67total current liabilities 12,234 11,120 11,005totAl eQuIty AnD lIABIlItIeS 27,688 27,825 27,754

– 9 –


Parent Company

Condensed statement of cash flows


Cash flow from operating activities –48 –82 130

Cash flow from investing activities 1 –213 –197

Cash flow from financing activities 47 295 67

total cash flow 0 0 0

Cash and cash equivalents, opening balance 0 0 0

Cash and cash equivalents, closing balance 0 0 0

– 10 –

Condensed statement of changes in equity


opening equity, 1 January 10,862 11,315 11,315

Dividend paid in accordance with AGM decision –800 –450 –450

Profit/loss for the period/year –95 –149 –3

Closing equity at the end of the period/year 9,967 10,716 10,862

ACCountInG prInCIpleS

The interim report for the Group is prepared in accordance with IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act. For the Parent Company the interim report is prepared in accordance with the Annual Accounts Act, which is in accordance with the regulations in RFR 2 Accounting for Legal Entities. The accounting principles and calculation principles applied in this report for the Parent Company and the Group are unchanged compared with the most recently published annual report. New or revised IFRSs and interpretations from IFRIC have not had any effect on the earnings or financial position of the Group or the Parent Company. Amounts are stated in SEK million unless otherwise indicated. Figures in parentheses refer to the corresponding period in the previous year.

note 1 – ChAnGe In vAlue oF ForeSt ASSetS

The market-related value of Sveaskog’s forest assets at 30 June 2015 has been calculated at SEK 32,932 million (32,518), of which SEK 30,748 million (30,344) comprises the fair value of standing timber and SEK 2,184 million (2,174) an identified cost of land. The change in the balance sheet since year-end 2014 amounts to SEK 414 million (197), of which the unrecognised change in value is SEK 432 million (192) in profit or loss for the first half of the year. The parameters applied when calculating standing timber are updated in the year-end accounts.

MeASureMent At FAIr vAlueThe table below shows the Group’s assets, liabilities and derivatives measured at fair value:

Level 1 Level 2 Level 3 Jan–June Jan–June Jan–June Jan–June Jan–June Jan–June SEKm 2015 2014 2015 2014 2015 2014

Assets Financial assets at fair value through profit or loss

Standing timber 30,748 29,568Total assets 0 0 0 0 30,748 29,568

Liabilities Liabilities 0 0 9,248 9,448 Derivative instruments 0 0 153 125 0 0Total liabilities 0 0 9,401 9,573 0 0

Measurement techniques for level 2 fair valueDerivatives in level 2 consist of interest rate swaps and are recognised at market value or as hedge accounting. Measurement at fair value of interest rate swaps is based on swap rates obtained from a financial information system and converted to a zero coupon curve for measurement.


– 11 –

The Group’s measurement process Within the framework of the Group’s treasury function work is performed with measurement of financial assets and liabilities. The treasury function reports to the Chief Accountant who in turn reports to the Deputy CEO/CFO. The treasury function uses a well-established financial system and financial price information from a well-known financial information system. Measurement of derivatives of the OTC type are double-checked to ensure the correct valuation.

Fair value of financial liabilities. The fair value of borrowing is assessed as shown below:

SEKm 30 June 2015 30 June 2014

Non-current liabilities 5,520 6,030 Current liabilities 3,728 3,417 Total 9,248 9,447

rISKS AnD unCertAIntIeS

A description of risks, uncertainties and risk management is provided in Sveaskog’s 2014 Annual Report (in Swedish) on pages 19–21. No other significant changes, in addition to those mentioned in this interim report, have occurred since publication of the annual report.

IMportAnt eventS AFter the CloSInG DAte

No important events have taken place after the closing date.

relAteD-pArty trAnSACtIonS

Transactions with related parties are specified in the Group’s Note 3 in Sveaskog’s 2014 Annual Report (in Swedish). No significant changes have occurred in relations or transactions with related parties compared with what is described in the 2014 Annual Report.

The Board of Directors and the CEO hereby confirm that this interim reportprovides a true and fair overview of the Parent Company’s and the Group’s operations,their financial position and performance, and describes material risks and uncertainties

facing the Parent Company and other companies in the Group.

Stockholm, 21 July 2015Sveaskog AB (publ.) (556558-0031)

Per-Olof Wedin President and CEO

The report has been signed by the CEO after authorisation from the Board of Directors.The report has not been reviewed by the company’s auditors.


For Further InForMAtIon, pleASe ContACt

Per-Olof Wedin, President and CEO, tel +46 8 655 91 74, +46 761 30 42 01Per Matses, Deputy CEO and CFO, tel +46 8 655 92 90, +46 706 55 98 20

www.sveaskog.se

FInAnCIAl CAlenDAr Interim report January – September 2015 21 October 2015Year-end report 2015 29 January 2016

Sveaskog AB, Stockholm Torsgatan 4, SE-105 22 Stockholm

Sveaskog AB, Kalix Torggatan 4, Box 315, SE-952 23 Kalix

[email protected]

telephone switchboard+46 771 787 000To contact Sveaskog’s employees

telephone customer service+46 771 787 100For questions about Sveaskog’s operations

interim report january– june 2015 q2 april–30 june 2015 net sales net sales decreased by 1% to...

Documents